Friedman in the fray: gas tax redux
The idea of implementing a gas tax is becoming as regular in the national debate as the seasons. Those in favor: the Wall Street Journal and Bill Ford, Jr. Those opposed: John McCain (remember him?). New York Times columnist Thomas Friedman brought the debate back this weekend in his latest column, which calls politicians out for their wimpiness for not dealing with energy issues – including nuclear power and, yes, a big huge gasoline tax – in any serious way. Friedman found an energy economist willing to support a $1 tax on each gallon of gasoline and diesel (oh, how our European readers must laugh at the idea of just adding a simple dollar to each gallon), but politicians say this is "off the table." Friedman writes:
Not very wimpy, that. Read the whole thing.Such a tax would make our economy healthier by reducing the deficit, by stimulating the renewable energy industry, by strengthening the dollar through shrinking oil imports and by helping to shift the burden of health care away from business to government so our companies can compete better globally. Such a tax would make our population healthier by expanding health care and reducing emissions. Such a tax would make our national-security healthier by shrinking our dependence on oil from countries that have drawn a bull's-eye on our backs and by increasing our leverage over petro-dictators, like those in Iran, Russia and Venezuela, through shrinking their oil incomes.
[Source: NYTimes]
Photo by Mingo.nl. Licensed under Creative Commons license 2.0.
Reader Comments (Page 1 of 2)
Reality Hurts 12:08PM (9/21/2009)
This is something that would have countless positive results. There is one issue... politics.
Lets be honest, it would be political suicide for any politician with any serious rank to actually push for such a tax. It is quite likely that the transition to alternatives will have to be forced through standard price rises through demand and supply. This could take a while, some say that it could take 5-6 years for gas to get back to where it was last summer, if not longer, but it will happen... maybe : - \
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Throwback 3:24PM (9/21/2009)
You have hit on the issue, political suicide. Why? Because we the people do not want to pay another tax that will supposedly be good for us. How many taxes have been presented as being "good for us". I would be willing to pay $2 per gallon gas tax if the government reduced my tax burden by a similar amount. How about the Government cut spending on oil and farm subsidies and use that money to pay down the debt? I am also all for nuclear power, I already have a plant "in my backyard" so to speak.
FitFan 12:12PM (9/21/2009)
I love the idea of a big gas tax as long as we have a way to help reduce the cost for those who are at or near the poverty line, as Friedman suggests in his article.
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Laurens 12:27PM (9/21/2009)
Before you know it the money will be spent on social security... better to force the car industry to build cars that meet strict CO2 emission rules. That way you also don't hurt the people that drive the installed base to much.
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KK 3:40PM (9/21/2009)
If cars become more efficient while gas tax stays the same, it becomes *cheaper* to drive. People would end up driving more, and become even more dependent on cars.
Rain 12:35PM (9/21/2009)
This would be another strawman debate from the author of the "Freidman Unit" to turn the debate from healthcare and banking regulation reform so that they die on the vine rather than being addressed.
Would this be green?Oh yes,but with so many other predatory business practices
being used against the needy,expect further rises in bankruptcy,foreclosures and credit defaults due to inflation caused by rises in transportation and shipping costs.
Lets fix some important problems first,before We go and cut off Our noses to spite Our face,then concentrate on ways to pay for the previous administrations tax cuts,no-bid contracts and subsidies to the 1%,the party faithful.
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Isellbeachhomes 12:34PM (9/21/2009)
Our gas is ALREADY TAXED. What about the 35% tax that is already on gas. Get real.
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paulwesterberg 1:36PM (9/21/2009)
The federal gas tax of 18.4 cents per gallon has not changed since 1993.
It is used to pay for the roads you take for granted. This tax has not kept up with inflation so now the government has to pass federal stimulus packages just to fix the roads.
The government also subsidizes oil and gas exploration, oil producing infrastructure in other countries and gives tax breaks to oil companies so it is hard to know what the real price of gas should be if we didn't have a socialized transportation system.
If the gas tax were raised slowly over time like one quarter every year then people would know that the price of gas was going to go up and plan accordingly.
paulwesterberg 1:48PM (9/21/2009)
Would you rather that the gubmit install tracking devices in your car and tax every mile you drive? Because that is the pork barrel boondoggle they are suggesting if they cant raise gas taxes in order to adequately pay for road construction.
Ernie 3:08PM (9/21/2009)
That's the lowest gas tax in the world outside of socialized countries where state-owned companies are the ones producing the gasoline in the first place (and they usually subsidize the price of gas at the pump).
Stop whining.
jpm 12:35PM (9/21/2009)
I support the idea of a gas tax. BUT, I do not trust the government to responsibly spend the money. They have demonstrated their incompetence over and over and over.
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KK 12:54PM (9/21/2009)
Corporations are no better - they have demonstrated their incompetence over and over and over. And some of the most efficient entities are government agencies; the Social Security Administration has an administrative overhead of less than 1%.
Also, even if the money is wasted, the higher tax would still change people's behavior for the better.
KK 12:54PM (9/21/2009)
Corporations are no better - they have demonstrated their incompetence over and over and over. And some of the most efficient entities are government agencies; the Social Security Administration has an administrative overhead of less than 1%.
Also, even if the money is wasted, the higher tax would still change people's behavior for the better.
wincros 1:01PM (9/21/2009)
Your fire department, your police department, your roads, your bridges, the internet, Army, Navy, Marines, your post office, your library, Social Security, Medicare, VA, FEMA before the Bush dismantling and on and on. They have also demonstrated great competence in spending your money. Be fair.
PabloKoh 3:21PM (9/21/2009)
wincros, Does your comment still apply even here in Chicago? By the way you should see the new Chicago Police Chevy Tahoes.
jpm 3:44PM (9/21/2009)
KK, I didn't imply anything about corporations.
wincros 12:53PM (9/21/2009)
Since war is the only thing we seem to be able to get behind as a nation, a gas tax would have to be campaigned for in the same way as just one item in a national security drive. Other things would have to be addressed as well, such as the continuing export of our manufacturing including war materiel to countries who could hold us hostage in a national crisis. Short of that a fuel tax would be political suicide for whichever party does it. It will irritate everyone every time they fill the tank, even the good person putting 10 gallons into their hybrid automobile.
It seems to me that removal of subsidies for fossil fuels and a really aggressive, but gradually phased in, annual carbon tax added to the sale price and annual registration will accomplish much the same thing.
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Dave B 1:43PM (9/21/2009)
I think the idea of gas tax increase is slowly gaining support in America.
While many are still against it, more and more people are beginning to realize that such a tax is necessary and unavoidable.
- US auto manufacturers support it
- Many folks on Wall St. also support it.
We need to reduce the defiicit, "which in part is due to military spending for oil foreign oil protection". We also need to reduce foreign oil dpendency. A gas tax increase would help do both.
It is up to us. WE need to get the word out in support of a gas tax increase.
In time, I believe we can generate enough support and get this passed......
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sean lawrence 2:07PM (9/21/2009)
Absolute insanity.
Since government and business have the same society to draw their employees from, a corrupt society will produce both corrupt government and corrupt business. We are all familiar with Wall Street and if anyone checks the spending habits of our officials they will be shocked.
The difference between big government and big business is this: you can quit a job. It is much harder to remove a government bureaucracy.
And to be fair, while the military, fire and police departments all perform valuable services and maybe staffed with great people, that does not make them efficient. The military services have redundant purchasing departments. They should all share one department. To counter the "happy" examples, let's look at the post office, the INS. Bureaucracies tend to self-perpetuate. How many toll road were set up on a temporary charter to pay for highway construction and then never were taken down?
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macmanic 2:09PM (9/21/2009)
Bring on a higher gas tax - it is long overdue. I voted for John Anderson for President in 1980 because he proposed a $0.50/gal tax on gasoline as a method to help pay for Social Security and to provide a financial incentive for Americans to break their gasoline addiction - an addiction that had become painfully apparent during the infamous 1973 Arab Oil Embargo. Higher gas taxes were a good idea then, and they're an even better idea now. Unfortunately, Anderson lost the election and Americans soon rejected the responsible energy conservation methods implemented by the Carter Administration.
How ironic and tragic that Americans, who proclaim, demand and admire "individual responsibility" so often reject that worthy mantra when electing their public officials.
As a US citizen I'm tired of being laughed at and held in climatic contempt by people from other (more enlightened) countries around the world. The United States needs to wake up and understand that our inability to "do the right and tough thing" is allowing other countries to take the lead and leave us in the dust. I guess Forrest Gump summed up 21st Century Americans the best; "stupid is as stupid does".
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